Ins 2.19(5)(L)1.1. Cumulated value or cash value or secondary guarantees provided by a universal life policy. Ins 2.19(5)(L)2.2. Cash values provided by a whole life policy which are subject to standard nonforfeiture law for life insurance. Ins 2.19(5)(L)3.3. A premium deposit fund which complies with all of the following: Ins 2.19(5)(m)(m) “Specific appointment” means a prearranged appointment agreed upon by both parties and definite as to place and time. Ins 2.19(5)(n)(n) “United States Armed Forces” means all components of the Army, Navy, Air Force, Marine Corps, and Coast Guard. Ins 2.19(6)(6) Practices declared false, misleading, deceptive or unfair on a military installation or using military personnel or programs. Ins 2.19(6)(a)(a) No insurer or insurance producer may engage in any of the following acts or practices on a military installation with respect to the in-person, face-to-face solicitation of life insurance: Ins 2.19(6)(a)1.1. Knowingly soliciting the purchase of any life insurance product door to door or without first establishing a specific appointment for each meeting with the prospective purchaser. Ins 2.19(6)(a)2.2. Soliciting service members in a group or mass audience or in a captive audience where attendance is not voluntary. Ins 2.19(6)(a)3.3. Knowingly making appointments with or soliciting service members during their normally scheduled duty hours. Ins 2.19(6)(a)4.4. Making appointments with or soliciting service members in barracks, day rooms, unit areas, or transient personnel housing or in other areas where the installation commander has prohibited solicitation. Ins 2.19(6)(a)5.5. Soliciting the sale of life insurance without first obtaining permission from the installation commander or the commander’s designee. Ins 2.19(6)(a)7.7. Fail to present Department of Defense Form 2885, Personal Commercial Solicitation Evaluation, to service members solicited or encouraging service members solicited not to complete or submit a Department of Defense Form 2885. Ins 2.19(6)(a)8.8. Knowingly accepting an application for life insurance or issuing a policy of life insurance on the life of an enlisted member of the United States Armed Forces without first obtaining for the insurer’s files a completed copy of any required form which confirms that the applicant has received counseling or fulfilled any other similar requirement for the sale of life insurance established by regulations, directives or rules of the Department of Defense or any branch of the United States Armed Forces. Ins 2.19(6)(b)(b) No insurer or insurance producer may do any of the following: Ins 2.19(6)(b)1.1. Use Department of Defense personnel, directly or indirectly, as a representative or agent in any official or business capacity with or without compensation with respect to the solicitation or sale of life insurance to service members. Ins 2.19(6)(b)2.2. Participate in any United States Armed Forces sponsored education or orientation program for the purpose of solicitation of the sale of life insurance to service members. Ins 2.19(7)(7) Practices declared false, misleading, deceptive or unfair regardless of location. No insurer or insurance producer may do any of the following regardless of location: Ins 2.19(7)(a)(a) Submit, process or assist in the submission or processing of any allotment form or similar device used by the United States Armed Forces to direct a service member’s pay to a third party for the purchase of life insurance. This includes, but is not limited to, using or assisting in using a service member’s MyPay account or other similar internet or electronic medium for such purposes. This subdivision does not prohibit assisting a service member by providing insurer or premium information necessary to complete any allotment form. Ins 2.19(7)(b)(b) Knowingly receive funds from a service member for the payment of premium from a depository institution with which the service member has no formal banking relationship. For purposes of subsection, a formal banking relationship is established when the depository institution does all of the following: Ins 2.19(7)(b)1.1. Provides the service member a deposit agreement and periodic statements and makes the disclosures required by 12 U.S.C. section 4301 et seq. and the regulations promulgated thereunder. Ins 2.19(7)(b)2.2. Permits the service member to make deposits and withdrawals unrelated to the payment or processing of insurance premiums. Ins 2.19(7)(c)(c) Employ any device or method or enter into any agreement whereby funds received from a service member by allotment for the payment of insurance premiums are identified on the service member’s leave and earnings statement or equivalent or successor form as savings or checking and where the service member has no formal banking relationship as defined in par. (b). Ins 2.19(7)(d)(d) Enter into any agreement with a depository institution for the purpose of receiving funds from a service member whereby the depository institution, with or without compensation, agrees to accept direct deposits from a service member with whom it has no formal banking relationship. Ins 2.19(7)(e)(e) Use Department of Defense personnel, directly or indirectly, as a representative or agent in any official or unofficial capacity with or without compensation with respect to the solicitation or sale of life insurance to service members who are junior in rank or grade, or to the family members of such personnel. Ins 2.19(7)(f)(f) Offer or give anything of value, directly or indirectly, to Department of Defense personnel to procure their assistance in encouraging, assisting or facilitating the solicitation or sale of life insurance to another service member. Ins 2.19(7)(g)(g) Knowingly offer or give anything of value to a service member with a pay grade of E-4 or below for his or her attendance at any event where an application for life insurance is solicited. Ins 2.19(7)(h)(h) Advise a service member with a pay grade of E-4 or below to change his or her income tax withholding or state of legal residence for the sole purpose of increasing disposable income to purchase life insurance. Ins 2.19(7)(i)(i) Make any representation, or use any device, title, descriptive name or identifier that has the tendency or capacity to confuse or mislead a service member into believing that the insurer, insurance producer or product offered is affiliated, connected or associated with, endorsed, sponsored, sanctioned or recommended by the U.S. Government, the United States Armed Forces, or any state or federal agency or government entity, including, but not limited to, use of any of the following titles: “Battalion Insurance Counselor,” “Unit Insurance Advisor,” “Servicemen’s Group Life Insurance Conversion Consultant” or “Veteran’s Benefits Counselor.” Nothing is this subdivision shall be construed to prohibit a person from using a professional designation awarded after the successful completion of a course of instruction in the business of insurance by an accredited institution of higher learning, including, but are not limited to, Chartered Life Underwriter, Chartered Financial Consultant, Certified Financial Planner, Master of Science in Financial Services, and Masters of Science of Financial Planning. Ins 2.19(7)(j)(j) Solicit the purchase of any life insurance product through the use of or in conjunction with any third party organization that promotes the welfare of or assists members of the United States Armed Forces in a manner that has the tendency or capacity to confuse or mislead a service member into believing that either the insurer, insurance producer or insurance product is affiliated, connected or associated with, endorsed, sponsored, sanctioned or recommended by the U.S. Government or the United States Armed Forces. Ins 2.19(7)(k)(k) Use or describe the credited interest rate on a life insurance policy in a manner that implies that the credited interest rate is a net return on premium paid. Ins 2.19(7)(L)(L) Excluding individually issued annuities, misrepresent the mortality costs of a life insurance product, including stating or implying that the product costs nothing or is free. Ins 2.19(7)(m)(m) Make any representation regarding the availability, suitability, amount, cost, exclusions or limitations to coverage provided to a service member or dependents of a service member by Servicemembers’ Group Life Insurance or Veterans’ Group Life Insurance, which is false, misleading or deceptive. Ins 2.19(7)(n)(n) Make any representation regarding conversion requirements, including the costs of coverage, or exclusions or limitations to coverage of Servicemembers’ Group Life Insurance or Veterans’ Group Life Insurance to private insurers which is false, misleading or deceptive. Ins 2.19(7)(o)(o) Suggest, recommend or encourage a service member to cancel or terminate his or her Servicemembers’ Group Life Insurance or issue a life insurance policy which replaces an existing Servicemembers’ Group Life Insurance policy unless the replacement will take effect upon or after the service member’s separation from the United States Armed Forces. Ins 2.19(7)(p)(p) Deploy, use or contract for any lead generating materials designed exclusively for use with service members that do not clearly and conspicuously disclose that the recipient will be contacted by an insurance producer, if that is the case, for the purpose of soliciting the purchase of life insurance. Ins 2.19(7)(q)(q) Fail to disclose that a solicitation for the sale of life insurance will be made when establishing a specific appointment for an in-person, face-to-face meeting with a prospective purchaser. Ins 2.19(7)(r)(r) Excluding individually issued annuities, fail to clearly and conspicuously disclose the fact that the product being sold is life insurance. Ins 2.19(7)(s)(s) Fail to make, at the time of sale or offer to an individual known to be a service member, the written disclosures required by 10 U.S.C. 992 note section 10. Ins 2.19(7)(t)(t) Excluding individually issued annuities, when the sale is conducted in-person face-to-face with an individual known to be a service member, fail to provide the applicant at the time the application is taken all of the following: Ins 2.19(7)(t)1.1. An explanation of any free look period with instructions on how to cancel if a policy is issued. Ins 2.19(7)(t)2.2. Either a copy of the application or a written disclosure. The copy of the application or the written disclosure shall clearly and concisely set out the type of life insurance, the death benefit applied for and its expected first year cost. A basic illustration that meets the requirements of s. Ins 2.17 shall be deemed sufficient to meet this requirement for a written disclosure. Ins 2.19(7)(u)(u) Excluding individually issued annuities, recommend the purchase of any life insurance product which includes a side fund to a service member in pay grades E-4 and below unless the insurer and insurance producer have reasonable grounds for believing that the life insurance death benefit, standing alone, is suitable. The offer for sale, or sale, of a life insurance product which includes a side fund to a service member in pay grades E-4 or below who is currently enrolled in Servicemembers’ Group Life Insurance is presumed unsuitable unless, after the completion of a needs assessment, the insurer demonstrates that the applicant’s Servicemembers’ Group Life Insurance death benefit, together with any other military survivor benefits, savings and investments, survivor income, and other life insurance are insufficient to meet the applicant’s insurable needs for life insurance. For the purpose of this paragraph: Ins 2.19(7)(u)1.1. “Insurable needs” are the risks associated with premature death taking into consideration the financial obligations and immediate and future cash needs of the applicant’s estate, survivors or dependents. Ins 2.19(7)(u)2.2. “Other military survivor benefits” include: the Death Gratuity, Funeral Reimbursement, Transition Assistance, Survivor and Dependents’ Educational Assistance, Dependency and Indemnity Compensation, TRICARE Healthcare Benefits, Survivor Housing Benefits and Allowances, Federal Income Tax Forgiveness, and Social Security Survivor Benefits. Ins 2.19(7)(v)(v) Excluding individually issued annuities, offer for sale or sell any life insurance contract which includes a side fund to an individual known to be a service member: Ins 2.19(7)(v)1.1. Unless interest credited accrues from the date of deposit to the date of withdrawal and permits withdrawals without limit or penalty; Ins 2.19(7)(v)2.2. Unless the applicant has been provided with a schedule of effective rates of return based upon cash flows of the combined product. For this disclosure, the effective rate of return shall consider all premiums and cash contributions made by the policyholder and all cash accumulations and cash surrender values available to the policyholder in addition to life insurance coverage. This schedule shall be provided for at least each policy year from one to ten and for every fifth policy year thereafter ending at the earliest of age 100, policy maturity or final expiration; and Ins 2.19(7)(v)3.3. Which by default diverts or transfers funds accumulated in the side fund to pay, reduce or offset any premiums due. Ins 2.19(7)(w)(w) Excluding individually issued annuities, offer for sale or sell any life insurance contract which after considering all policy benefits, including but not limited to endowment, return of premium or persistency, does not comply with standard nonforfeiture law for life insurance. Ins 2.19(7)(x)(x) Sell any life insurance product to an individual known to be a service member that excludes coverage if the insured’s death is related to war, declared or undeclared, or any act related to military service except for an accidental death coverage, including a double indemnity, which may be excluded. Ins 2.19 HistoryHistory: CR 07-108: cr. Register March 2009 No. 639, eff. 4-1-09. Ins 2.20Ins 2.20 Unisex nonforfeiture values in certain life insurance policies. Ins 2.20(1)(1) Purpose. The purpose of this section is to allow insurers who have elected an operative date under s. 632.43 (6m) (h), Stats., to provide for cash surrender and paid-up nonforfeiture benefits which do not vary with the sex of the life insured. Some life insurance policies are subject to the decision of the United States supreme court in Arizona Governing Committee v. Norris,103 Supreme Court Reporter 3492, which makes it illegal for an employer to make contributions after August 1, 1983, to a defined contribution pension plan if the benefits derived from those contributions differ by sex. Separate provisions are set forth in this section for unisex policies that may be subject to that decision and for unisex policies in general. Ins 2.20(2)(2) Scope. Except as provided for in sub. (4) (b), this section applies only to those policies issued in this state for which the insurer or employer has determined that the implications of Norris would prohibit the use of cash surrender and paid-up nonforfeiture benefits which vary with the sex of the insured. Ins 2.20(3)(b)(b) “1000 qx” means the yearly death rate per thousand at age x. Ins 2.20(3)(c)1.1. “Table A” means the 1980 CSO Mortality Table and the 1980 CET Mortality Table for male lives, with or without 10-Year Select Mortality Factors. The yearly death rate per thousand, 1000 qx, for these tables is published in Appendix A and Appendix B, pages 618 and 619, Volume 33, Transactions of the Society of Actuaries. Ins 2.20(3)(c)2.2. “Tables NA and SA” means the corresponding 1980 nonsmoker and smoker mortality tables for male lives. Ins 2.20(3)(d)1.1. “Table G” means the 1980 CSO Mortality Table and the 1980 CET Mortality Table for female lives, with or without 10-Year Select Mortality Factors. The yearly death rate per thousand, 1000 qx, from these tables is published in Appendix A and Appendix B, pages 618 and 619, Volume 33, Transactions of the Society of Actuaries. Ins 2.20(3)(d)2.2. “Tables NG and SG” means the corresponding 1980 nonsmoker and smoker mortality tables for female lives. Ins 2.20(3)(e)1.1. “Tables B through F” means the blended 1980 CSO and 1980 CET Mortality Tables for policies issued on an age nearest birthday basis with varying proportions of male lives to total lives. The ratio of male lives to total lives is 80% for Table B, 60% for Table C, 50% for Table D, 40% for Table E and 20% for Table F. These tables are published in the proceedings of the National Association of Insurance Commissioners for the 1983 December meeting, pages 396 last birthday basis, the tables shall be modified by interpolation between values of lx. Ins 2.20(3)(e)2.2. “Tables NB through NF and SB through SF” means the corresponding 1980 blended nonsmoker and smoker mortality tables. Ins 2.20(3)(f)(f) “1980 CSO and CET Nonsmoker and Smoker Mortality Tables”means the mortality tables with separate rates of mortality for nonsmokers and smokers derived from the 1980 CSO and 1980 CET Mortality Tables and adopted by the NAIC in December 1983. Mortality rates for these tables are published on pp. 406-409, Proceedings of the National Association of Insurance Commissioners, 1984, Vol. 1, and pp. 521-530 Proceedings of the National Association of Insurance Commissioners, 1987, Vol. 1. Ins 2.20(4)(4) Cash value and paid-up nonforfeiture benefits. Ins 2.20(4)(a)1.1. For any policy of life insurance which falls within sub. (2) of this section and is delivered or issued for delivery in this state after the operative date of s. 632.43 (6m) (h), Stats., applicable to the policy, the cash surrender and paid-up nonforfeiture benefits provided under the policy may be calculated using one of the sets of tables designated as Table A through Table G. Tables A and G may not be used for policies issued on or after January 1, 1985 except where the proportion of persons insured is anticipated to be 90% or more of one sex or the other or except for certain policies converted from group insurance. Such group conversions issued on or after January 1, 1986, shall use mortality tables based on the blend of lives by sex expected for such policies if such group conversions are considered extensions of the Norris decision. Ins 2.20(4)(a)2.2. In place of Tables A through G under sub. (1), corresponding Tables NA through NG and SA through SG may be used in situations where separate rates for nonsmokers and smokers are used. Ins 2.20(4)(b)1.1. An insurer may elect one of the Tables B through F in lieu of the 1980 CSO and CET tables for all life insurance policies under which all contractual requirements and guarantees are independent of the sex of the life insured, without regard to any opinion as to the applicability of Norris; provided that the Table so elected may not be changed unless the insurer can demonstrate to the satisfaction of the commissioner that a different Blend is more appropriate. Ins 2.20(4)(b)2.2. In lieu of the above, corresponding Tables NB through NF and SB through SF may be used in situations where separate rates for nonsmokers and smokers are used. Ins 2.20(5)(5) Reserves. The minimum reserve standards for life insurance policies are set forth in s. 623.06, Stats., and are not affected by this section. Ins 2.20 HistoryHistory: Emerg. cr. eff. 5-19-84; cr. Register, August, 1984, No. 344, eff. 9-1-84; r. (6) under s. 13.93 (2m) (b) 16., Stats., Register, December, 1984, No. 348; renum. (3)(c), (d), (e), (4)(a) and (b) to be (3)(c)1., (d)1., (e)1., (4)(a)1. and (b)1. and am. (4)(a)1. and (b)1., cr. (3)(c)2., (d)2., (e)2., (f), (4)(a)2. and (b)2., Register, November, 1988, No. 395, eff. 12-1-88. Ins 2.30Ins 2.30 Annuity mortality tables. Ins 2.30(1)(1) Purpose. The purpose of this section is to adopt, pursuant to s. 623.06 (2a) (b) and (d), Stats., mortality tables for use in determining the minimum standard of valuation for annuity and pure endowment contracts. Ins 2.30(2)(a)(a) “1983 GAM table” means those male and female group annuity mortality tables adopted for the valuation of group annuity and pure endowment contracts in December of 1983 by the NAIC and published on pages 414-415, NAIC proceedings, vol. I, 1984. Ins 2.30(2)(b)(b) “1983 table ‘a’” means that mortality table adopted for the valuation of individual annuity and pure endowment contracts in June of 1982 by the NAIC and published on page 454, NAIC proceedings, vol. II 1982. Ins 2.30(2)(c)(c) “1994 GAR table” means the group annuity reserving table adopted for the valuation of group annuity and pure endowment contracts in December of 1996 by the NAIC as published on pages 866 and 867, vol. XLVII, transactions, society of actuaries, 1995.
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